MerchandisingThe activity of promoting the sale of goods at retail.Merchandising activities may include display techniques, free samples, on-the-spot demonstration, pricing, shelf talkers, special offers, and other point-of-sale methods. According to American Marketing Association, merchandising encompasses "planning involved in marketing the right merchandise or service at the right place, at the right time, in the right quantities, and at the right price."

Visual MerchandisingVisual merchandise is the presentation of a store and its merchandise in such a manner that will attract the attention of potential customers.Definition: Visual merchandise is the presentation of a store and its merchandise in such a manner that will attract the attention of potential customers. It involves decorating the store keeping the interior presentation the same as what is promised on the outside.Description: The end purpose of visual merchandise is to aid in making a sale. Visual merchandise presents an image of whom or what the shopper can be when using the merchandise displayed.It enables in converting a walk by shopper into a walk-in customer. Visual merchandise requires a combination of skills including creativity, artistic knowledge and understanding of store design. Color is a big attraction point in converting potential shoppers into customers.

Bounce RateBounce Rate is the percentage of single-page sessions (i.e. sessions in which the person left your site from the entrance page without interacting with the page).There are a number of factors that contribute to a high bounce rate. For example, users might leave your site from the entrance page if there are site design or usability issues. Alternatively, users might also leave the site after viewing a single page if they've found the information they need on that one page, and had no need or interest in going to other pages. Purpose-Bounce rates can be used to help determine the effectiveness or performance of an entry page at generating the interest of visitors. An entry page with a low bounce rate means that the page effectively causes visitors to view more pages and continue on deeper into the web site.High bounce rates typically indicate that the website isnt doing a good job of attracting the continued interest of visitors Reasons for a high bounce rateA high bounce rate can be caused by one or many different factors, including:

Single page siteIf you have only one page on your site, Google Analytics doesn't register multiple pageviews unless users reload that page. As a result, single-page sites tend to have high bounce rates. To find out how people use this type of site, implement other content tracking methods, like Events.

Incorrect implementationIf you're seeing a high bounce rate from a multiple-page site, check to see that you've added the tracking code to all your pages.

Site designIf all your pages contain the tracking code but you're still seeing a high bounce rate, consider: Redesigning the entrance (or landing) pages Optimizing those pages so they correlate better with the search terms that bring users to your site, with ads you're running, or with keywords you've purchased Changing the ads or keywords to better reflect page contentExperiment with site-wide changes to optimize your site with Content Experiments.

User behaviorOther factors may be solely attributed to user behavior. For example, if a user bookmarks a page on your site, goes to it, and leaves, then that's considered a bounce.

How to determine Bounce rate:-A bounce occurs when a web site visitor only views a single page on a website, that is, the visitor leaves a site without visiting any other pages before a specified session-timeout occurs. There is no industry standard minimum or maximum time by which a visitor must leave in order for a bounce to occur. Rather, this is determined by the session timeout of the analytics tracking software.

whereRb = Bounce rateTv = Total number of visitors viewing one page onlyTe = Total entries to pageA visitor may bounce by:Clicking on a link to a page on a different web siteClosing an open window or tabTyping a new URLClicking the "Back" button to leave the siteSession timeoutThere are two exceptions: 1) You have a one page website 2) Your offline value proposition is so compelling that people would see just one single webpage and get all the information they need and leave.Updated more accurate measure of bounce rate is:Bounce Rate = "Total number of visits viewing one page" divided by "Total number of visits greater than or equal to the average variable page load speed".Rb = Bounce rateTv = Total number of visits viewing one page onlyTe = Total entries to pagePs = Average variable page load speed

A commonly used session timeout value is 30 minutes. In this case, if a visitor views a page, doesn't look at another page, and leaves his or her browser idle for longer than 30 minutes, they will register as a bounce. If the visitor continues to navigate after this delay, a new session will occur.The bounce rate for a single page is the number of visitors who enter the site at a page and leave within the specified timeout period without viewing another page, divided by the total number of visitors who entered the site at that page. In contrast, the bounce rate for a web site is the number of web site visitors who visit only a single page of a web site per session divided by the total number of web site visits.

Order Conversion Rate (OCR)The first KPI that is measured by analysts is probably the order conversion rate. It is one of the prime most important numbers that are presented to the senior management.Generally a conversion rate refers to the percentage of events leading to another event. In the e-commerce world it usually refers to the percentage of visits that convert into orders. Most web analysts define the conversion rate as the percent of site visitors who do something that the company wants them to do. This could be to submit an order, sign up for an email, send a lead and so on. It also measures the movements from the entry page to a particular page.

Definition-Order Conversion Rate (OCR) is defined as the number of orders taken divided by the total number of visits to the website during the same period.Buyer Conversion Rate (BCR) is defined as the number of customers converted divided by the total number of visitors to the website during the same period.

Example:-If a website is visited 50,000 times a month and gets 1,000 orders the conversion rate is1,000 50,000 = 2 %That means that 2 visits out of 100 turn into an order.The rate gives very important information on revenue projection by multiplying it with the Average Order Value. For example:Number of Visits x Conversion Rate x Average Order Value = Projected Revenue10,000 x 2 % x 10 $ = 2,000 $Hence, for a campaign that aims at 10,000 visits a revenue of 2,000 $ can be projected

What is a good order conversion rate?Whether a conversion rate is good or bad always depends on the market, the industry, the competition, buying power and so on. A good way to compare a conversion rate is to evaluate the rate to a same time period one or more years/month before, to see whether it is increasing or decreasing. The average conversion rate of a website is around 2 %.

How to increase order conversion rate?Since a conversion does not happen at one stage, firstly you have to determine where optimization resources can be allocated. During this multistep process, many visitors leave the website and finally do not click on the order-button. This is often shown in a typical order funnel. Each step to the final conversion is a micro conversion. Each step has to lead successfully to the next step.Any company committing resources to optimize the process should use diagrams to determine where in the hierarchy its current efforts decline and what other areas might be more lucrative for optimization efforts.After analyzing where most the visitors are being lost, improvements have to be implemented: Improve the total number of visitors, e.g. by promotion campaign, SEO, SEM or banners Improve the numerator by providing quality information and an easy transaction on the website. Therefore avoid annoying the consumer by handling errors carefully, highlighting consumer goals or following web conversions. Select information about the target group by market research and test the website

Problems with order conversion rateNowadays some e-commerce experts recommend not worrying about the rate every day. The two main reasons for this recommendation are: The order conversion rate just shows how the minority did something, but it does not explain why the majority did not do anything. It is not always the main aim of visitors to go to a homepage to buy something. Customers also intend to research, look for information, read a blog or just need advice. Companies that are only concerned about OCR ignore major parts of the homepage traffic.

Cart AbandonmentAbandonment of virtual shopping carts is quite common scenario seen while in brick and mortar, it rarely happens. Marketers can count how many of the shopping carts used in a specified period result in completed sales versus how many are abandoned. The abandonment rate is the ratio of the number of abandoned shopping carts to the number of initiated transactions or to the number of completed transactions. The typical shopping cart abandonment rate for online retailers varies between 60% and 80%, with an average of 67.91%. PurposeAbandonment rate as a marketing metric helps marketers to understand website user behavior. Specifically, abandonment rate is defined as "the percentage of shopping carts that are abandoned" prior to the completion of the purchase. How to Calculate Cart Abandonment-As an example, an online comics retailer found that of the 25,000 customers who loaded items into their electronic baskets, only 5,000 actually purchased:Purchases not completed = purchases initiated less purchases completed = 25,000 5,000 = 20,000.Abandonment rate = Not completed / Customer Initiation = 20,000 / 25,000 = 80% abandonment rate. CausesThere are various reasons behind the high cart abandonment rate. Complicated checkout process. Hidden prices that come out at the time of checkout like taxes or high shipping charge/ presented with unexpected cost. Tough or lengthy registration process. No option to check out without signing up. Limited payment options. Website crashed or too slow

Approaches to Reducing Shopping Cart AbandonmentThere are two ways to deal with shoppers leaving your store before buying. They can be broken down into two groups:1) Before Cart AbandonmentThe Before Cart Abandonment stage is simply when your customer is still on your website. While they are on your site many things can go wrong. But if you follow these steps youll be sure to increase the number of customers that complete your checkout process.

Here are 10 steps to make your checkout more effective for before cart abandonment:1. Show ImagesProvide clear thumbnails of the actual items the customer is purchasing. Rather than simply having text to describe what they are buying, its always better to show an image of the item(s).

2. Display Security LogosThe Statistic study above showed that 17% of shoppers dont purchase because they are concerned about security. In a test published by Get Elastic, an online retailer found that by placing a security badge on their site sales increased 4-6%. Its important to note however that there are other studies that show a decrease when using these logos. So its important to test the placement and style when using these.

3. Test Single Page vs Multi-Page CheckoutSome studies have shown single page to be more effective. Yet other retailers see better results from multi-stage. If youre going to use multi-page checkout, be sure to include a progress bar that shows the customer how many pages there are and what page they are on in the process.

4. Make Editing the Cart EasyShoppers dont want to be locked in to the checkout page. If they made a mistake in their selection or need to edit it for some reason make sure its easy for them to do so.

5. Offer Different Payment MethodsConsider offering payment by Visa, Mastercard, American Express and Paypal as well as other payment solutions depending on the audience and demographic youre targeting. FreshGigs saw a 15% increase in their checkout process simply by enabling the option to pay with American Express, which wasnt offered out of the box with their payment processor.

6. Offer SupportProviding a toll-free telephone number or chat box on the checkout page gives shoppers confidence and eases any concerns they have. Plus if they do have a question its better to have them ask it right then and there rather than leaving the site and hoping that they remember to ask the question later and come back.

7. Avoid RegistrationsOne of the biggest turnoffs in some checkout processes is being forced to register on the website in order to complete the purchase. A study by User Interface Engineering showed a 45% increase in customer purchases when forced registration was removed from the checkout page.8. Offer Free ShippingA Deloitte study found 69% of shoppers are more likely to shop with online retailers who offer free shipping. And a ComScore study found that 61% of shoppers would quit their order if free shipping wasnt offered.

9. Add TestimonialsUnless youre a well known brand, credibility will be an issue for you. By displaying testimonials and reviews from customers you can help alleviate any concerns shoppers may have.

10. Offer Price Guarantees and RefundsRemember that 36% of shoppers dont complete their purchase because of price. By offering a price guarantee you give the shopper confidence that theyve found the best deal and have no need to compare prices with your competitors. And by having a clear and practical refund policy youre adding peace of mind to the shoppers experience.

2) After Cart AbandonmentAfter implementing the changes on your website its time to look at what you can do if the shopper still decides to leave without purchasing.Well now explore two of the most powerful ways to deal with abandoned carts.

1.Ad RetargetingAccording to AdRoll, a retargeting platform, 2% of shoppers convert on the first visit to an online store. Retargeting brings back the other 98%. Retargeting works by keeping track of people who visit your site and displaying your [retargeting] ads to them as they visit other sites online.

The above diagram from Retargeter shows how the process works. A shopper comes to your website and leaves without purchasing. You can then use a service like Google Adwords, AdRoll, or Retargeter to display the ads you choose to that shopper as they visit other sites online.The retargeting ads you display can be as targeted as you want. If a buyer comes to your site to purchase a hat, you can have retargeting ads of that same hat show up when the shopper is on a news or music website for example, as long as those sites accept the ads and many of the top sites online these days do.Sample ResultsGet Satisfaction used retargeting to increase their ROI 248% over a three month period. PeopleTree, a fair-trade fashion retailer, was able to get 30% of non-converting visitors to return to their website through retargeting.Email Recovery CampaignsAnother way to get shoppers back to your store to complete their order is through email recovery campaigns.Heres how it works: You setup personalized emails that get sent to the shopper if they dont complete their purchase.

If youre using a multi-page checkout its easy to get the shoppers name and email address upfront.You then create a series of 1-3 emails that will get sent out to that shopper at set intervals after they have abandoned the cart and left your site.The emails should include: Pictures of the item they selected Reviews or testimonials from other shoppers Guarantee and refund policy information A strong call to action to get them back to your siteTiming the emails: 1st email should go out within 24 hrs 2nd email send within 2 days 3rd email send within 1 weekSample ResultsBy using shopping cart recovery emails BlueMonkey was able to recover 13% of their abandoned orders within days of the campaign starting. HE>i reports getting handfuls of additional orders each month with this strategy. VEDA also reports thousands of dollars in additional sales with recovery emails.Below is an example of the recovery email Dodocase sends to visitors who abandon their carts.

Not only is it playful and not boring, but it offers support and multiple options to reconnect with the company.

Conclusion-Stop Leaving Money on the TableMany online retailers are losing money each and every day due to cart abandonment. By implementing the techniques and tools we can get more shoppers to complete their checkout process the first time. And if they do decide to abandon cart, and some always will, we are well equipped to get them back to our website to complete their purchase. Put these ideas to work and youll be well on your way to increase your stores sales.